The Probability That Daughters of a Mother Who Attends Church

question 125

Multiple Choice

The probability that daughters of a mother who attends church regularly will also attend church regularly is 0.9, whereas the probability that daughters of a mother who does not attend regularly will attend regularly is 0.2. ​
If a woman attends church regularly and has one daughter, who in turn has one daughter, what is the probability that the granddaughter attends church regularly? Round your answer to two decimal places.
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• A)0.66
• B)0.42
• C)0.17
• D)0.81
• E)0.83

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Definitions:

Strictly Convex Preferences

Preferences that imply a consumer always prefers a mixture or combination of two goods over having just one of them, indicating a strong preference for variety.

Marginal Rates of Substitution

The rate at which a consumer is willing to substitute one good for another while maintaining the same level of satisfaction, pivotal in understanding consumer choice.

Pareto Optimal

An economic situation where it is impossible to make any one individual better off without making at least one individual worse off.

Pareto Optimal Allocation

An allocation of resources where no reallocation can make someone better off without making someone else worse off, reflecting a state of optimal efficiency.